Apple team to meet inter-ministerial group on January 25

NEW DELHI: Apple executives are expected to meet senior officials from various ministries including finance and IT on January 25 to discuss the possibility of manufacturing iPhones in the country and seek some incentives it has sought. According to news reports, departments of industrial policy and promotion, environment and forests and revenue would also be part of the discussions. Apple didn't comment on the development, when contacted.

The Cupertino-based technology company has demanded tax concessions and duty exemptions for manufacturing phones in India, but commerce ministry officials said demands may not be met and Apple would have to work within the same rules as over 40 companies, including Chinese, that have set up phone manufacturing units here. The iPhone maker has partnered with contract manufacturer Wistron to assemble devices in Bengaluru but it’s not clear when operations will begin. Apple makes phones through contract manufacturers such as Foxconn, Pegatron and Inventec in several markets including China and Brazil.

At present, concessions are allowed on multiple levels. There is a Modified Special Incentive Package Scheme for large investments, subsidy on investments in special economic zones and had also come up a duty differential regime that lowers duties if devices are made in India, versus imports.

Apple’s earlier requests to exempt it from adhering to norms mandating 30% local sourcing and importing refurbished phones have been turned down by the government.

Industry insiders said Apple does not intend to source locally even if it starts to make in India and all its parts will be sourced from outside.